SALESFORCE INC (CRM) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:CRM • US79466L3024

212.29 USD
-1.79 (-0.84%)
At close: Jan 30, 2026
211.61 USD
-0.68 (-0.32%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

6

CRM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. While CRM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CRM has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year CRM was profitable.
  • CRM had a positive operating cash flow in the past year.
  • In the past 5 years CRM has always been profitable.
  • Each year in the past 5 years CRM had a positive operating cash flow.
CRM Yearly Net Income VS EBIT VS OCF VS FCFCRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 7.59%, CRM is in the better half of the industry, outperforming 78.42% of the companies in the same industry.
  • CRM has a better Return On Equity (12.03%) than 75.54% of its industry peers.
  • CRM has a better Return On Invested Capital (10.05%) than 85.25% of its industry peers.
  • CRM had an Average Return On Invested Capital over the past 3 years of 5.83%. This is below the industry average of 10.73%.
  • The 3 year average ROIC (5.83%) for CRM is below the current ROIC(10.05%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.59%
ROE 12.03%
ROIC 10.05%
ROA(3y)3.46%
ROA(5y)3.61%
ROE(3y)5.81%
ROE(5y)5.94%
ROIC(3y)5.83%
ROIC(5y)3.79%
CRM Yearly ROA, ROE, ROICCRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 4 6 8 10

1.3 Margins

  • CRM has a better Profit Margin (17.91%) than 80.58% of its industry peers.
  • CRM's Profit Margin has improved in the last couple of years.
  • The Operating Margin of CRM (22.03%) is better than 88.49% of its industry peers.
  • CRM's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 77.73%, CRM is doing good in the industry, outperforming 75.18% of the companies in the same industry.
  • CRM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 22.03%
PM (TTM) 17.91%
GM 77.73%
OM growth 3Y107.25%
OM growth 5Y49.51%
PM growth 3Y44.23%
PM growth 5Y85.88%
GM growth 3Y1.66%
GM growth 5Y0.52%
CRM Yearly Profit, Operating, Gross MarginsCRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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6

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRM is destroying value.
  • Compared to 1 year ago, CRM has less shares outstanding
  • CRM has more shares outstanding than it did 5 years ago.
  • CRM has a better debt/assets ratio than last year.
CRM Yearly Shares OutstandingCRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
CRM Yearly Total Debt VS Total AssetsCRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • CRM has an Altman-Z score of 4.48. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of CRM (4.48) is better than 72.30% of its industry peers.
  • CRM has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
  • CRM has a better Debt to FCF ratio (0.65) than 77.70% of its industry peers.
  • A Debt/Equity ratio of 0.14 indicates that CRM is not too dependend on debt financing.
  • CRM has a Debt to Equity ratio (0.14) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 0.65
Altman-Z 4.48
ROIC/WACC0.92
WACC10.92%
CRM Yearly LT Debt VS Equity VS FCFCRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 0.98 indicates that CRM may have some problems paying its short term obligations.
  • With a Current ratio value of 0.98, CRM is not doing good in the industry: 75.54% of the companies in the same industry are doing better.
  • CRM has a Quick Ratio of 0.98. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of CRM (0.98) is worse than 74.10% of its industry peers.
  • The current and quick ratio evaluation for CRM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 0.98
Quick Ratio 0.98
CRM Yearly Current Assets VS Current LiabilitesCRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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6

3. Growth

3.1 Past

  • CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.76%, which is quite good.
  • Measured over the past years, CRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.71% on average per year.
  • Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 8.41% in the last year.
  • The Revenue has been growing by 17.25% on average over the past years. This is quite good.
EPS 1Y (TTM)18.76%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%34.85%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%

3.2 Future

  • Based on estimates for the next years, CRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.75% on average per year.
  • CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.51% yearly.
EPS Next Y16.58%
EPS Next 2Y14%
EPS Next 3Y13.91%
EPS Next 5Y14.75%
Revenue Next Year9.34%
Revenue Next 2Y10.17%
Revenue Next 3Y9.88%
Revenue Next 5Y9.51%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CRM Yearly Revenue VS EstimatesCRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
CRM Yearly EPS VS EstimatesCRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 18.43, CRM is valued on the expensive side.
  • Based on the Price/Earnings ratio, CRM is valued a bit cheaper than the industry average as 75.54% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 28.32. CRM is valued slightly cheaper when compared to this.
  • The Price/Forward Earnings ratio is 16.03, which indicates a correct valuation of CRM.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 78.78% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, CRM is valued a bit cheaper.
Industry RankSector Rank
PE 18.43
Fwd PE 16.03
CRM Price Earnings VS Forward Price EarningsCRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CRM is valued cheaper than 80.94% of the companies in the same industry.
  • CRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRM is cheaper than 82.73% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.67
EV/EBITDA 16.05
CRM Per share dataCRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of CRM may justify a higher PE ratio.
  • CRM's earnings are expected to grow with 13.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)0.67
EPS Next 2Y14%
EPS Next 3Y13.91%

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3

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.78%, CRM is not a good candidate for dividend investing.
  • CRM's Dividend Yield is rather good when compared to the industry average which is at 0.56. CRM pays more dividend than 89.93% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, CRM's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.78%

5.2 History

  • CRM is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
CRM Yearly Dividends per shareCRM Yearly Dividends per shareYearly Dividends per share 2024 2025 0.5 1 1.5

5.3 Sustainability

  • 21.86% of the earnings are spent on dividend by CRM. This is a low number and sustainable payout ratio.
DP21.86%
EPS Next 2Y14%
EPS Next 3Y13.91%
CRM Yearly Income VS Free CF VS DividendCRM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B
CRM Dividend Payout.CRM Dividend Payout, showing the Payout Ratio.CRM Dividend Payout.PayoutRetained Earnings

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SALESFORCE INC / CRM FAQ

What is the ChartMill fundamental rating of SALESFORCE INC (CRM) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CRM.


What is the valuation status for CRM stock?

ChartMill assigns a valuation rating of 6 / 10 to SALESFORCE INC (CRM). This can be considered as Fairly Valued.


Can you provide the profitability details for SALESFORCE INC?

SALESFORCE INC (CRM) has a profitability rating of 8 / 10.


What is the valuation of SALESFORCE INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for SALESFORCE INC (CRM) is 18.43 and the Price/Book (PB) ratio is 3.37.


How financially healthy is SALESFORCE INC?

The financial health rating of SALESFORCE INC (CRM) is 6 / 10.